CANADA STOCKS-Bank results help boost TSX

Reuters Staff

3 Min Read

* TSX rises 1.04 percent to 10,248.08

* Energy shares up 1.1 percent as oil climbs

* Financial shares rise on bank results (Adds details, quote)

By Jennifer Kwan

TORONTO, May 28 (Reuters) - Toronto’s main stock market opened higher on Thursday, boosted by strength in resource issues and by rising financial shares as results for some of Canada’s big banks came in better than expected.

Three of Canada’s big banks reported mainly positive results on Thursday despite setting aside more money to cover bad loans and detailing a raft of writedowns for credit and market losses. [ID:nN28311974]

Shares of Toronto-Dominion Bank (TD.TO) climbed 3.2 percent to C$51.91, while National Bank of Canada (NA.TO) was up 3.4 percent at C$51.16.

However, Canadian Imperial Bank of Commerce (CM.TO) was a top net loser, falling 3.8 percent to C$54.84.

“It’s clear that they still have some credit issues and their retail franchise is still stagnant,” Paul Hand, managing director at RBC Capital Markets, said of the CIBC results.

“Investors are clearly disappointed in its numbers, that it’s taking longer to improve.”

At 10:02 a.m. (1402 GMT), the S&P/TSX composite index .GSPTSE was up 105.92 points, or 1.04 percent, at 10,248.08, with eight of its 10 main groups higher.

Hand said that U.S. government data also helped market sentiment. Data showed new orders for long-lasting U.S. goods rose more than expected in April and fewer workers filed for new jobless benefits last week. [ID:nN28317740]

The TSX’s rise followed a 1.4 percent selloff on Wednesday as growing jitters about the United States taking on huge debt to revive economic demand against a background of record budget deficits pushed up bond yields around the world. This fanned fears of higher borrowing costs, which could delay an economic recovery. [MKTS/GLOB]

The price of oil CLc1 held steady above $63 a barrel after OPEC ministers meeting in Vienna decided to leave the group’s oil output untouched at 24.85 million barrels per day. [ID:nSYD113600] Petro-Canada PCA.TO climbed 1.5 percent to C$46.95.